McKesson (NYSE:MCK) Stock Price Expected to Rise, Bank of America Analyst Says

McKesson (NYSE:MCK) had its price target lifted by Bank of America from $755.00 to $800.00 in a research note issued to investors on Friday morning,Benzinga reports. They currently have a buy rating on the stock.

A number of other analysts have also recently commented on MCK. StockNews.com cut shares of McKesson from a “strong-buy” rating to a “buy” rating in a research report on Friday, February 14th. Evercore ISI upped their price objective on shares of McKesson from $650.00 to $675.00 and gave the company an “outperform” rating in a research report on Thursday, February 6th. Citigroup lowered their price objective on shares of McKesson from $713.00 to $677.00 and set a “buy” rating for the company in a research report on Friday, January 10th. UBS Group upped their price objective on shares of McKesson from $708.00 to $805.00 and gave the company a “buy” rating in a research report on Tuesday, April 29th. Finally, Wells Fargo & Company increased their target price on McKesson from $641.00 to $691.00 and gave the stock an “equal weight” rating in a report on Friday, March 14th. Three analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, McKesson currently has an average rating of “Moderate Buy” and a consensus target price of $686.69.

McKesson Stock Performance

Shares of McKesson stock opened at $694.12 on Friday. The firm has a fifty day moving average of $678.24 and a two-hundred day moving average of $621.72. The stock has a market capitalization of $86.99 billion, a price-to-earnings ratio of 31.78, a PEG ratio of 1.29 and a beta of 0.53. McKesson has a 52 week low of $464.42 and a 52 week high of $728.48.

McKesson (NYSE:MCK) last issued its earnings results on Thursday, May 8th. The company reported $10.12 EPS for the quarter, beating the consensus estimate of $9.83 by $0.29. The company had revenue of $90.82 billion during the quarter, compared to analysts’ expectations of $94 billion. McKesson had a net margin of 0.82% and a negative return on equity of 181.26%. The business’s revenue for the quarter was up 18.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $6.18 EPS. As a group, research analysts forecast that McKesson will post 32.77 EPS for the current fiscal year.

McKesson Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 1st. Investors of record on Monday, June 2nd will be paid a $0.71 dividend. The ex-dividend date is Monday, June 2nd. This represents a $2.84 annualized dividend and a yield of 0.41%. McKesson’s dividend payout ratio (DPR) is currently 13.00%.

Insider Activity at McKesson

In other McKesson news, CEO Brian S. Tyler sold 8,961 shares of the firm’s stock in a transaction that occurred on Friday, February 14th. The shares were sold at an average price of $600.66, for a total transaction of $5,382,514.26. Following the completion of the sale, the chief executive officer now directly owns 69,625 shares in the company, valued at $41,820,952.50. This trade represents a 11.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Leann B. Smith sold 188 shares of the firm’s stock in a transaction that occurred on Wednesday, February 12th. The stock was sold at an average price of $609.59, for a total transaction of $114,602.92. Following the sale, the executive vice president now owns 1,051 shares of the company’s stock, valued at $640,679.09. This trade represents a 15.17% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 18,110 shares of company stock worth $10,855,706. Insiders own 0.11% of the company’s stock.

Hedge Funds Weigh In On McKesson

A number of hedge funds have recently added to or reduced their stakes in the stock. Arjuna Capital acquired a new position in shares of McKesson during the 1st quarter worth $2,674,000. Charles Schwab Investment Management Inc. raised its holdings in McKesson by 3.4% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 861,696 shares of the company’s stock worth $579,913,000 after purchasing an additional 28,045 shares during the last quarter. ASR Vermogensbeheer N.V. acquired a new stake in McKesson during the 1st quarter worth about $11,109,000. Greykasell Wealth Strategies Inc. acquired a new position in McKesson in the first quarter valued at approximately $164,000. Finally, Hemington Wealth Management grew its position in shares of McKesson by 23.5% during the 1st quarter. Hemington Wealth Management now owns 142 shares of the company’s stock worth $95,000 after buying an additional 27 shares during the period. Institutional investors own 85.07% of the company’s stock.

About McKesson

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products.